This provision provides for the assignor to except from this assignment and reserve an overriding royalty interest of all oil, gas, casinghead gas, and other minerals that may be produced from the lands under the terms of the Leases that are the subject of this assignment.
Massachusetts Reservation of Overriding Royalty Interest (LORI) is a legal doctrine that allows landowners to retain a percentage of the royalties generated from the extraction of minerals or oil and gas from their property, even after they have transferred ownership of the land or mineral rights to another party. This reservation ensures that landowners maintain a financial interest in the profits derived from the exploitation of natural resources on their property. Under Massachusetts law, there are two types of Reservation of Overriding Royalty Interest: Explicit LORI and Implied LORI. 1. Explicit LORI: This type of reservation occurs when the landowner explicitly reserves a specific percentage or fraction of the royalties in the conveyance or transfer of the property. The reservation must be clearly stated in the deed, lease agreement, or any other legal document pertaining to the transfer of ownership. For example, a landowner may sell their land to a mining company but explicitly reserve a 10% overriding royalty interest in the deed. This ensures that even if the mining company sells or leases the mineral rights to a third party, the landowner will still receive 10% of the royalties from the extracted minerals. 2. Implied LORI: Implied LORI arises when the language used in the conveyance or transfer of property implies an intention to reserve a royalty interest, even if it is not explicitly stated. Implied LORI is often based on the circumstances of the transaction, the parties' conduct, and the customary practices in the industry. For example, if the transfer of property involves a prior history of the landowner receiving royalties from mineral extraction, it may be inferred that there is an implied reservation of overriding royalty interest, entitling them to a continued share of the royalties. Massachusetts Reservation of Overriding Royalty Interest is a crucial aspect of property rights and allows landowners to benefit from the long-term economic potential of their land. It ensures a fair distribution of profits between landowners and subsequent mineral rights holders, granting ongoing financial support even after the property changes hands.
Massachusetts Reservation of Overriding Royalty Interest (LORI) is a legal doctrine that allows landowners to retain a percentage of the royalties generated from the extraction of minerals or oil and gas from their property, even after they have transferred ownership of the land or mineral rights to another party. This reservation ensures that landowners maintain a financial interest in the profits derived from the exploitation of natural resources on their property. Under Massachusetts law, there are two types of Reservation of Overriding Royalty Interest: Explicit LORI and Implied LORI. 1. Explicit LORI: This type of reservation occurs when the landowner explicitly reserves a specific percentage or fraction of the royalties in the conveyance or transfer of the property. The reservation must be clearly stated in the deed, lease agreement, or any other legal document pertaining to the transfer of ownership. For example, a landowner may sell their land to a mining company but explicitly reserve a 10% overriding royalty interest in the deed. This ensures that even if the mining company sells or leases the mineral rights to a third party, the landowner will still receive 10% of the royalties from the extracted minerals. 2. Implied LORI: Implied LORI arises when the language used in the conveyance or transfer of property implies an intention to reserve a royalty interest, even if it is not explicitly stated. Implied LORI is often based on the circumstances of the transaction, the parties' conduct, and the customary practices in the industry. For example, if the transfer of property involves a prior history of the landowner receiving royalties from mineral extraction, it may be inferred that there is an implied reservation of overriding royalty interest, entitling them to a continued share of the royalties. Massachusetts Reservation of Overriding Royalty Interest is a crucial aspect of property rights and allows landowners to benefit from the long-term economic potential of their land. It ensures a fair distribution of profits between landowners and subsequent mineral rights holders, granting ongoing financial support even after the property changes hands.
